High Income Child Benefit Charge

The HICBC Tax Charge Explained

The High Income Child Benefit Charge (HICBC) applies when either partner in a household earning child benefit has income above £60,000. The charge claws back 1% of the child benefit for every £200 of income above £60,000, until it is fully recovered at £80,000.

For two children, child benefit is worth approximately £2,075 per year. If you earn £70,000, you would repay 50% of this through the HICBC (£1,037). At £80,000+, you effectively lose all the child benefit. The charge is collected through self-assessment.

A key planning strategy is to use salary sacrifice or pension contributions to reduce your adjusted net income below £60,000. This preserves the full child benefit while also saving tax. Use our child benefit calculator to model this.

How Higher Income Child Benefit Charge Works in Practice

The High Income Child Benefit Charge (HICBC) requires the higher-earning partner in a household to repay Child Benefit through self-assessment if their adjusted net income exceeds £60,000. The charge is 1% of the Child Benefit received for every £200 of income above £60,000. At £80,000 or above, the entire benefit is effectively clawed back.

Practical Tips

For a family with two children, Child Benefit is approximately £2,076/year (2025/26). If the higher earner has income of £70,000, the charge claws back 50% (£1,038). At £80,000+, the full amount is repaid. However, it is still worth claiming Child Benefit even if you repay it all — the claim provides the lower-earning parent with National Insurance credits towards their State Pension. Pension salary sacrifice can reduce your adjusted net income below £60,000, eliminating the charge entirely.

Related Topics

The HICBC threshold was raised from £50,000 to £60,000 in April 2024 and the taper extended to £80,000 (previously £60,000). This removed many families from the charge. See child benefit calculator.